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Best Buy cuts on horizon

by on13 April 2009

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Employees to take pay cuts to stay

Best Buy has previously warned that if things didn’t improve, the company would have to look at making additional cuts. According to our sources, while many employees will not actually get laid off, it is very likely that many will be forced to take a pay cut.

While there will be cuts, those will be likely restricted to senior level sales members and those being phased out by the merging of departments. Others will be affected at some point in the future if things don’t improve, and as the company predicted, severance packages will not be as generous this time around.

The employees that are getting hit with the pay cuts will have Best Buy at least trying to help out by bridging the gap to help employees transition to the new pay rate. Best Buy will offer this bridging for a period of nine months. The pay cuts will start in June, but employees affected are expected to be notified shortly.

While people on the outside looking in might be upset with Best Buy going to the extreme of slashing worker wages in an effort to save money, the reality is that more people would have to be let go if they did not take this action. Best Buy seems to be at least trying to do everything possible to retain as many workers as possible.
Last modified on 13 April 2009
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